I predicted the market would go up 5% to 7% this year in one of my past videos, but unfortunately, I was wrong. The numbers proved to be a little bit different in our area, so today I’ll be explaining how things have actually turned out in three local markets: Pasadena, San Marino, and Altadena.
In 2020, the average list price in Pasadena was $918,000. This increased to $925,000 in 2021. However, the sale price rose 13% from last year to now, increasing from about $1 million to $1.2 million. Properties still spend an average of 52 to 56 days on the market.
For San Marino, the average list price in 2020 was just over $1.8 million. It’s since increased to just under $2 million. The average sale price was $2.4 million last year, and it increased by 10% to $2.7 million this year.
Altadena seems to be growing exponentially. The average list price was $572,000 in 2020 and $578,000 in 2021. The sales price was $885,000 in 2020, but now it’s increased by a whopping 29% to $1.5 million. The market here is absolutely blowing up.
“My predictions were wrong—prices increased by much more than 5% to 7%.”
Because of these skyrocketing prices, many buyers are thinking of sitting out for a while and waiting for the market to crash. Well, I don’t think that’s going to happen anytime soon; I believe the market will continue rising for another year or two before it finally plateaus.
Our market today is much different than it was during the 2009 crash. Banks were essentially giving loans to anyone who said they had an income, and people were pulling out equity to buy big-ticket items. Well, everyone basically learned their lesson, so homeowners are holding on to their equity, and banks have created many more hoops to jump through. Today we’re seeing people put 30% to 40% down, and many are even paying in cash. We’re not going to see short sales or foreclosures.
Like I said at the beginning, my predictions were wrong—prices increased by much more than 5% to 7%. If you’d like to learn more about how things have changed in your neighborhood, or if you have any questions, feel free to reach out to me. I look forward to hearing from you soon.